Teaching Healthsouth-style tricks…

April 9, 2004

Every since Healthsouth blew up last year, Caremark Rx (CMX) has been working overtime to distance itself from the company, even going so far as to pick up and move from Birmingham to Nashville. Healthsouth’s former Chairman and CEO, Richard Scrushy, faces an 85-count federal indictment. In addition, 15 former Healthsouth executives, including all of the its’ former CFOs have pled guilty to a variety of federal charges. Scrushy served as Caremark’s Chairman for 8 years, stepping down in 2001 and seems to have taught the company a few tricks during his tenure, like helping out family members. In Caremark’s proxy filed last week, it notes that the son of Chairman and CEO Edwin Crawford, Andrew, received a 64% raise last year. In fairness, Andrew was promoted from a vice president to a senior vice president in 2003, but that large of a raise still seems a bit excessive. What isn’t clear from the proxies is exactly how long Andrew has worked for Caremark or just what he’s doing for $292,302 a year. Edwin joined the company in 1998, but the first disclosure about Andrew is in 2002.

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